Solar Power
Significant growth in renewable energy generation is being driven by rising energy demand, shrinking fossil fuel supplies, energy security concerns and climate change. When combined with proposed European Union renewable energy obligations, which dictate that 20% of energy is generated from renewable sources by 2020, these drivers are creating an important window of investment opportunity.
Solar technology is proven to be reliable and radiation levels from the sun are a very consistent input parameter. Investments in this sector are expected to provide solid returns within a low risk environment, as long-term government backed incentives for solar energy generation ensure a stable stream of future cash flows.
Foresight Group has created a dedicated Solar Fund that offers investors proprietary access to solar investment opportunities in the unquoted sector. The Fund finances the construction of large solar power plants and acquires plants that are already operational.
Each power plant will offer a running yield on the equity investment as well as capital growth, principally achieved on exit. Having eliminated construction risk, the consolidated portfolio of power plants will have proven its energy generating capacity and will have the critical mass that will appeal to energy related acquirers. As a result, Foresight anticipates that a capital premium will be generated on a sale of the portfolio.
Foresight identifies solar projects directly with engineering companies, through property developers and using its own development vehicle. An EPC (engineering, procurement and construction) contract is entered into by the project vehicle created for each project. The EPC contractor typically sources the PV panels and other equipment and installs them on site. In addition, the project vehicle will acquire the necessary land rights to undertake the project.
If you are an EPC contractor, developer, Utility or have a strategic interest in the sector, please contact Jamie Richards. The EPC Company is typically also engaged to provide ongoing operations and maintenance services to the project. If you are a potential investor in Foresight’s Solar Fund, please contact Meredith Lee.
